1 of 3 135 >H4M0 - Business Leadership: Management Fundamentals Fullfeder Pen Company Case The Fullfeder Pen Company was established ten years ago by Ludwig Fullfeder, an engineer who became its president and general manager of all operations. Initially the company had about a dozen employees engaged in the manufacturing and assembly of a full line of high-quality pens, some of which Ludwig designed and patented. These pens were typically purchased from Fullfeder in bulk, mainly from customers seeking personalized custom pens to use as giveaways for promotional purposes as an affordable and effective way to advertise their business. As sales expanded and the company thrived, Ludwig kept adding both additional plant facilities and employees to handle the increased business. Due to their success in the marketplace, in 2019 the Fullfeder Pen Company was purchased and taken over by the much larger enterprise Macro Pen Industries with Ludwig opting to remain in his capacity as company president and general manager, albeit now as an employee rather than as the owner. At the time that Macro Pen acquired the Fullfeder as a subsidiary, Macro had felt uncertain as to the organizational structure that existed within the company at the time of purchase. They now have requested that Ludwig develop and disclose a formal organizational structure. In the past, Fullfeder had never felt that a formal organization structure one was necessary. "I've always done the thinking here," he remarked to a friend when the request was made. Ludwig, an impetuous individual very accustomed to managing his company on an informal basis, nonetheless grudgingly assembled the organizational chart indicated below without any consultation with Macro Pen management and submitted it to Macro Pen head office. President Office Manager Sales Manager Design Supervisor Plant Superintendent Inventory Control Clerk Quality Control Supervisor Sales Agents 43 Foremen 300 Production Workers Production Co-ordinator Accounting Clerk Advertising Manager Research Supervisor Purchasing Manager Personnel Supervisor Macro Pen immediately realized that this graphical depiction displaying Fullfeder Pens' reporting or relationship hierarchy and structure was not at all indicative of any widely accepted or typical organizational structure recognized within the industry, but given the Fullfeder's previous success history, they allowed it to stand, at least for the time being. At first, this organizational structure seemed to work satisfactorily. During this initial period, Ludwig laboured frantically to make the chart work. He worked 12 to 14 hours each day, much of the time in the plant supervising the production line. And when not overseeing the manufacturing process, he would move from department to department tackling one problem after another. On a typical day, Ludwig 1) told purchasing to change suppliers of the basic plastic stock for pen barrels 2) hired a new accounts receivable clerk to work in the office, 3) reviewed and made corrections on advertising for a trade journal, and 4) expedited a shipment of pens for a long-time account.